Why Robotics Process Automation is Ideal for the Insurance Industry?

Imagine this: You submit a new application to an insurance company, and the company automatically completes your underwriting process and activates your insurance policy in 48 hours. All this without you and the company getting involved in multiple back-end processes are monotonous and time-consuming. Welcome to the world of insurance process automation!

Insurance companies have come a long way in the past decade and leave no stone unturned to provide every possible facility to their customers. Emerging technologies riding the digital wave, such as Robotics Process Automation (RPA), are playing a significant role in how the insurance industry is shaping up—becoming more efficient and fastidiously focused on customers experience.

As per MarketsandMarkets, the RPA market is estimated to be worth $2,467 million by 2022, at a CAGR of 30.14% between 2017 and 2022. The chief driver of this surge in demand is the ease of deploying robotic process automation in insurance with traditional business processes or legacy systems, as the technology is non-intrusive.

Here are a few areas where RPA in insurance has become indispensable:

  • Claims Registration: The claims registration process reduces by at least 50% after RPA solution implementation. Contact centres also save time to register and update each claim.
  • Credit Note Refund: Overall time and cost for credit note refunds improve with RPA implementation. Processing time reduces to 20% to achieve the same throughput with 25% of the staff.
  • Approval for Credit Note Refunds: With RPA implementation, the credit note approval process reduces the manpower requirement by 75% and improves the service delivery efficiency by up to 50%.
  • Cancellation of Policies: The cancellation process improves signifficantly. After implementing an RPA solution, companies take 1/3rd of the time to cancel insurance policy.
  • Forms Registration: More forms are registered and there is 40% improvement in the output with 50% of the staff currently required. 
  • NCD (No Claims Discount) Verification: Manual NCD validation usually takes up to 10 minutes. However, with the help of bots, verification and flag mismatch can be carried out in only 2 minutes.
  • Policy Issuance: The manual task of policy issuance may take over a week for successful completion. After the implementation of RPA, companies take less than 2 days to issue policies.

Opportunities for Insurance

Although, RPA offers immense business value, only certain processes lend themselves to automation. Typical charateristics of processes that best suited to  RPA include:

  • Access multiple systems
  • Use unambiguous rules
  • Are prone to human errors
  • Have restricted human intervention
  • Deal with high-volume transactions
  • Require minimal exceptional handling
  • Are repetitive in nature
  • Result in significant workload
  • Involve menial sub-activities or processes

While there are several uses of RPA in the insurance industry, automating these processes will allow your workforce to utilise their skills better and focus on resolving complex tasks to increase business value.

Improving Business with Bots

RPA applications enhance productivity levels, reduce operational costs, provide growth opportunities, and increase business efficiency. Insurance companies can achieve these goals if they are able to collect policyholder’s details, access previous years’ claims documents as well as other relevant data to arrive at an informed decision when settling insurance claims.

Additionally, RPA has an impact on back-end operations and other non-core business functions within the insurance industry. RPA bots can help customers in the following functions:

  • Download policyholder data from multiple sources
  • Scan and read data
  • Data entry into key systems
  • Verify insurance period
  • Flag errors/mismatch in data
  • Provide quick approvals
  • Generate follow-up alerts
  • Compile data from multiple systems
  • Provide 360° view of data available with customer support staff
  • RPA and Insurance: A Perfect Match

The insurance industry’s back-office operations have to be highly efficient. Hence, there is an increasing need to adopt RPA in the industry to help automate high-volume and time-consuming operational activities.

RPA automation is enabling insurance providers fight challenges, and achieve growth and, a much needed, competitive edge. They are now fully compliant to regulatory standards and are achieved enhanced levels of customer service and satisfaction with RPA implemented solutions.

Due to RPA flexibility and technology advancements, the adoption in the insurance industry has become prominent and inevitable. In the coming years, RPA will become an essential tool for insurance companies to remain competitive and deliver against the ever increasing customer levels of satisfaction being demanded. 

Finding Strategic Partners

Kellton Tech is a leading insurance process automation provider with experience and the dedicated teams of architects, business analysts, and insurance robotics specialists required to develop competitive hindsight. We help clients achieve an almost 70% reduction in time spent performing transactions while also reducing the effort spent on monotonous tasks. Whenever you think about RPA in insurance, think about Kellton.

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